The European Union was relatively quiet last week, with no significant economic data coming out. In the same note, German economic growth dipped back to 0.4% in Q2 off of its Q1 0.9%. However, last week, this did not deter German investors as the Deputy Finance Minister, Jörg Kukies stated that German’s international business sector (affected by Tariffs via U.S. and China) have been covered by their strong domestic growth. Germany has a very balanced budget, and that is their priority. They currently carry a 58% debt to GDP ratio for 2019 Q1 (as opposed to the U.S.’s +103% ratio.)
From chart analysis, we can see that the German DAX finished up +1.74%. Closing up strong for the second week in a row. Showing the bullish trend is intact. We are currently seeing some slowing at $12,255, which is the exact figure of the next uncontested resistance. If price fails were going to move back to the neckline of $11,8500 before a possible higher rally.
If the German DAX is stubborn as the S&P 500 we will see a rally to $12,400 before the move down to $11,000 even.
THE PLAY: We are looking to sell on daily bearish candle close to $11,900.
From chart analysis, we can see that the German DAX finished up +1.74%. Closing up strong for the second week in a row. Showing the bullish trend is intact. We are currently seeing some slowing at $12,255, which is the exact figure of the next uncontested resistance. If price fails were going to move back to the neckline of $11,8500 before a possible higher rally.
If the German DAX is stubborn as the S&P 500 we will see a rally to $12,400 before the move down to $11,000 even.
THE PLAY: We are looking to sell on daily bearish candle close to $11,900.